Inflation is the main source of concern for investors about Mexico and they take as a second factor of uncertainty the possible depreciation of the Mexican peso, according to the quarterly survey applied by the investment bank UBS.
Half of the 200 investors and business owners consulted by the firm anticipate that inflation will last more than 12 months and 68% of the total identify price escalation as a threat to meeting their financial objectives.
According to the survey results, 58% of those interviewed are concerned about the impact of inflation on the real value of their cash.
Consequently, 55% of investors plan to fight inflation by reducing their cash positions.
When delving into the concern they expressed about inflation, 55% say that it is the impact on daily expenses and 54% consider that it can impact the value of what they are going to pass on to their heirs.
Despite inflation and market volatility, 43% of investors use leverage to increase their market positions; and 39% plan to continue increasing their credit positions for the next 12 months.
Security, business concern
In the section for owners of Mexican companies, 74% highlighted security as their main concern; 70% identified increased regulation as a factor of concern, and 70% spoke of weak customer demand.
In this same section they detailed that 80% feel optimistic about the prospects for the next 12 months; 18% feel neutral and 2% are pessimistic about the future.
Then they asked about the main sources of optimism for the businessmen consulted and 53% foresee that the economy will continue to recover; 40% believe that the increase in public spending will be an economic incentive and another 40% believe that the momentum of recent years will help maintain a positive streak.
According to the results, Mexican investors consider that the conflict will affect world stability.